Japan disaster could boost commodity prices

An analyst for a major Canadian bank has predicted that prices for lumber, plywood, steel and other commodities will rise over the next six to eight months due to the rebuilding efforts in Japan.

As reported in the Montreal Gazette and other media outlets, Scotiabank’s commodities expert Patricia Mohr said that reconstruction in Japan will boost demand and prices for lumber, panelboard and plywood, especially from West Coast producers, and also for steel and many other metals.

As for energy, Japan is turning to imported liquefied natural gas (LNG) and crude oil to offset the loss of its nuclear power capacity, Mohr said.